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Which one of the following is an example of a direct bankruptcy cost? Forgoing a positive net present value project to conserve current cash Operating
Which one of the following is an example of a direct bankruptcy cost?
Forgoing a positive net present value project to conserve current cash
Operating at a debt-equity ratio that is less than the optimal ratio
Incurring legal fees for the preparation of bankruptcy filings
Reducing the dividend payout ratio as a means of increasing a firm's equity
Losing a key customer due to concerns over a firm's financial viability
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